Inherited 1099-Misc

[kreyn]

I received a 1099-Misc form from my deceased sisters workplace.  Box 3 was checked under other income.  When I told Turbotax that it was inherited, it still added tax owed.  Is that right?  I understood inherited income was not taxable. 

[Anonymous_ · Accepted solution]

I am sorry for your loss.

You should contact the Payer. However, since this is from your sister's place of work, it is most likely some form of compensation which would be taxable to you (even though you "inherited" it). This is commonly termed IRD (income in respect of a decedent).

See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285932

See also https://www.irs.gov/publications/p559#en_US_2021_publink100099579

[kreyn]

It was for accrued sick leave, vacation etc.  Thanks for your help.

[8-1]

Where do you enter money received from a farm land inheritance.

[Critter-3]

@8-1 

Your question is too vague ... what exactly did you inherit ?   If land did you sell it or did the estate ?